Delivery Agent Holdings Corporation, the company that acquired Musictoday, has filed a notice that it is closing its Crozet location on Feb. 22 and will lay off 134 employees, according to the Virginia Workforce Network’s Rapid Response program.
The director of human resources at Delivery Agent in Crozet said she was not aware of the layoffs and closure notice, and requests for comment from Delivery Agent were not returned.
The Worker Adjustment and Retraining Notification Act, known as WARN, requires employers who are planning a plant closing or a mass layoff to give affected employees at least 60 days notice of such an employment action.
The employers have to notify union or other representatives of the affected employees, the employees themselves, state dislocated-worker departments and the chief elected official of the local government. Employers with 100 or more employees must give the notice.
State employment officials and Albemarle County officials said they were notified of the WARN notice and that it was properly filed.
But just because company files a WARN notice does not mean the layoffs must occur, officials said. Companies that are reorganizing or selling may file the notice but may retain employees and continue operation after reorganization or sale.
“It is possible that a company may find another buyer or a group of employees may get together and purchase the company,” said Sean McCusty, the state’s Rapid Response coordinator for the region that includes Albemarle County.
McCusty and county officials said they had not heard whether the Crozet firm was going to close.
In September 2016, Delivery Agent Inc., a television commerce company, and affiliates Clean Fun Promotional Marketing Inc., Shop the Shows LLC and Musictoday filed a voluntary Chapter 11 petition to initiate a sale of the company.
Delivery Agent Inc. announced that the company was being purchased by Hillair Capital in November. Delivery Agent Holdings Corporation, the company that the WARN notice is listed under, was registered in November in California and has the same address as Hillair Capital.
Attempts to reach Hillair Capital officials to clarify the WARN notice were unsuccessful.
“This is an exciting day for Delivery Agent and our valued partners and employees,” said then-Delivery Agent CEO Mike Fitzsimmons in a November statement. “Hillair Capital is a strong strategic partner who shares our vision and passion for Delivery Agent’s next phase of growth. We look forward to working with our partners and customers for years to come.”
Musictoday, the Crozet-based music merchandise and marketing company started by Coran Capshaw in 2000, was under majority ownership by Live Nation Entertainment beginning in 2006.
In 2014, Delivery Agent Inc., a television commerce company, acquired Musictoday from Live Nation.